What's buzzing in PSU banks?

Any idea why PSU banks are extremely bullish from last couple of days? Leading the upmove in the market. Which makes it bit scary :stuck_out_tongue_closed_eyes:

Low or no NPAs, better than expected profits, good future credit opportunities, big capex announcements from companies, government incentives for businesses, higher tax collections, higher government spend, good housing demand, retail loans increase etc etc.

Agreed but what changed suddenly in the last 2 days? Just market positioning?

As you know, price moves up or down before the actual events. So investors or traders or institutions are taking positions.

Books have been cleaned up in last 3-4 years. Many banks were put under PCA and now they are coming out of it.
Now they are ready for a fresh start to make new set of mistakes

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I guess yes, PSBs will be PSBs.

Or things could be different :face_with_peeking_eye:

:joy: hahahaha…that’s the investor expectation

I read somewhere that former RBI governor Raghuram Rajan has said that the next round of NPAs will be Mudra Loans.
So yes, this time it will be different.

I don’t know if anyone has made big profits with PSBs over the course of years, like they did with private banks. But occasionally there comes a chance to make money here too, and it seems now is such a chance.

Make hay while the sun shines.

One can make money in number of ways in the market. Following a trend/herd, riding the momentum too will make money, only caveat is to know when to get off :horse:

I have no knowledge of financial sector, just saying generally :face_in_clouds:

PSU banks on fire.

Nice catch guys

Although there are legitimate fears about USDINR depreciation which affects financials esp PSBs, Canara bank’s results and the outlook towards credit growth and capex is keeping the momentum going in PSBs …

Currently nearing 3 year highs

Bumper result by SBI - nearly 14k crore quarterly profit. Beat on all parameters :exploding_head::exploding_head:

nearly 20% up in a month

PSU banks are indeed buzzing

SBIN results were good.